Avenue Supermarts, operators of retail chain D-Mart, announced promoter R K Damani would pare his stake to comply with the shareholding norms. Shares of the company — up risen nearly fivefold since its maiden offering last year — dropped five per cent following the announcement.
According to the company, Damani plans to sell 6.24 million shares (about one per cent) between May 21 and June 14 in the open market. Currently, the total promoter holding in Avenue Supermarts is 82.2 per cent, which needs to be brought down to at least 75 per cent by March 2020. Damani in his personal capacity holds 39.41 per cent stake in the company.
Shares of Avenue Supermarts on Friday closed at Rs 1,417, down Rs 78.3, or 5.24 per cent over its previous close. At the current market rate, the stake sale will fetch Damani Rs 8.8 billion.
Damani has given an undertaking that he would not buy any equity shares when the open market share sale is underway.